Question # 1

The notation of Relationship is important

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Dominations ecology

Deep ecology

Sympathy ecology

None of these

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.

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slopes upward

Sloped downward

Is vertical

Is horizontal

An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________

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Shift down and to the left be unchanged

Shift down and to the left shift left

Shift up and to the right be unchanged

Shift up and to the right shift left

According the Hacksher-Ohlin model the source of comparative advantage is a country's

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Technology

Advertising

Factor endowments

both a and c

If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75

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60

200

250

240

Given the Is -LM construction of the figure above an unexpected increase in the price level, in the absence of any policy adjustment will.

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Increase both interest rates and GNP

Reduce both interest rates and GNP

Increase GNP but cause interest rates to tall

Increase interest but cause GNP to fall.

Health of a country's economy is indicated by

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Number of doctors per 1,000 population

Per capital income

Literacy rate

None of the above

It is the collection of data concerning the living and working conditionals of the people in a given community

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Samplin g

Case study

Social survey

Data collection

Economic development in UDCs is not possible without.

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Foreign aid

Capital formation

Natural resources

Domestic saving

In 1950's subsidies given to.

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Agriculture sector

Export sector

industrial sector

Services sector

Among the institutions and polices that have been created to support developing countries are.

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the World bank

The international Monetary Fund

The Generalized system of Preferences

All of the above

Efficiency wages are_______ that raise

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Low wages , employment

High wages, labor supply

High wages, productivity

High wages, employment

Which stage guides from the planning stage to the stag of drawing of final conclusions.

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Numerical facts

Statistical methods

Data

None of the above

Indifference curves shows various combinations of.

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One commodity

Two

Three

All of these

When the value of output exceeds planned spending .

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There is unsold output, and the level of income will fall

there is unsold output and the level of income will rise

There is unsold output, and the level of income does not change.

All of the above

In the short run, the supply of farm commodities is.

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Inelastic

Less elastic

More elastic

Undetermined

When oligopolistic firms interacting with one another each choose their best strategy given the strategies chosen by other firms in the market we have.

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A cartel

The perfect competitive outcome

The Nash equilibrium

Monopolistic competition

One of the transmission mechanism of monetary policy is through consumer house hold wealth.___________ and consumption.

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rise, increases, increases

rise, falls, increases

rise, increases, falls

rise, falls, falls

When referring to economic growth we normally refer to.

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Growth in actual real per capita output

Growth in potential real per capita output

Growth in actual nominal per capita output

Growth in potential real per capita output

The type of business in which an individual has unlimited responsibility for the debts of the organization.

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Partnership

Corporation

Monopoly

None of these

When your grandmother keeps her savings hidden under her mattress she is using money as.

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a standard of deferred panyment

A comfortable thing for sleeping

A medium of exchange

A store of value

If the prices of both goods increase by the same percent the budget line will

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Shift parallel to the left

shift parallel to the right

Pivot about the x axis

Pivot abut the Y axis

In a competitive industry each buyer and seller.

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Is a price taker

Produce different products

Believes that can influence price

Prevents the entry of competitors

The quantity of Y demanded increases by 6% when income changes, and income elasticity of demand is -0.9 income

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Decreased by 5.4 %

Decreases by 8%

Increased by 15%

Decreased by 6.7 %

What's the most common way for a central bank to reduce the money supply.

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Collect higher taxes

Sell bonds to the public

Buy bounds from the government

Buy bonds from the public

The "balance trade" is a record of.

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Exports and imports of financial assets

The current account plus capital account

The export of goods and services.

the value of merchandise exports minus imports

"Treating an individual as typical of a group" in the definition of.

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Pure discrimination human capital

Statistical discrimination

Human capital

Specific skills

The Central Bank controls money and credit with the exception of.

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Controlling the money base through open market operations

Controlling reserve requirements

Setting the discount rate of interest

controlling the stock market

A country transactions with the rest of the world are recorded in the

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Balance of international indebtedness

Balance of financial transactions

Balance of payments

Income statement

The retail price index is used to.

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Construct price lists

Compare shop prices

Measure changes in the cost of living

None of the above

If A is preferred to B and B is preferred to C and there is indifference between A and D

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D is preferred to C

B is preferred to D

There is indifference between C and D

There is indifference between B and D

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